BoT–UDSM Pact Positions Universities at the Heart of AI-Driven Financial Sector Transformation
By Jackson Isdory, CMU
Universities are increasingly asserting their role as engines of applied research and innovation, following the signing of a strategic Memorandum of Understanding (MoU) between the Bank of Tanzania (BoT) and leading academic institutions to advance Artificial Intelligence (AI) and data-driven innovation in the financial sector.
Signed in Dodoma, the MoU brings together BoT and five universities, with the University of Dar es Salaam (UDSM) emerging as a key academic partner in aligning advanced research with real-world financial sector priorities.
The partnership is designed to strengthen evidence-based policymaking, accelerate responsible innovation, and deepen structured collaboration between academia and public institutions.
Speaking at the signing ceremony, BoT Governor Mr. Emmanuel Tutuba described the agreements as a strategic intervention aimed at repositioning Tanzania’s financial sector to effectively harness emerging technologies.
“These Memoranda of Understanding mark a strategic milestone in promoting responsible, locally driven innovation within the financial sector. By working closely with universities, we are accelerating AI experimentation, testing new analytical tools, and adapting global use cases to our local context in line with the Bank’s AI and data innovation strategy,” said Governor Tutuba.
He noted that the structured data-sharing arrangements embedded in the MoUs would significantly reduce research bottlenecks while ensuring compliance with data protection laws, creating a trusted environment for innovation.
For UDSM, the partnership operationalizes the University’s statutory mandate to contribute to national development through research, innovation, and knowledge exchange. Vice Chancellor Prof. William A. L. Anangisye said the agreement reflects UDSM’s commitment to solution-oriented research with direct societal impact.
“This collaboration demonstrates UDSM’s readiness to align its research strengths with critical national priorities. It moves research beyond theory into application, ensuring that our scholars and students contribute directly to strengthening financial systems, policy formulation, and technological capacity,” Prof. Anangisye said.
He added that the MoU reinforces UDSM’s position as a trusted strategic partner to public institutions, capable of delivering rigorous research, skilled human capital, and innovation aligned with Tanzania’s development agenda.
CoICT anchors implementation
Implementation of the MoU at UDSM will be led by the College of Information and Communication Technologies (CoICT), with the Department of Computer Science and Engineering serving as the technical anchor. The arrangement leverages UDSM’s institutional strengths in AI, data science, machine learning, and advanced computing.
CoICT Principal Prof. Baraka Maiseli described the collaboration as a practical model for effective academic–industry integration.
“This MoU provides a structured platform for translating advanced research into practical tools for the financial sector. Through access to real datasets, Innovation Concept Notes, and joint supervision with the Bank of Tanzania, our researchers and students gain exposure to real-world challenges while delivering solutions of direct institutional relevance,” Prof. Maiseli said.
Under the agreement, BoT’s Planning Department will provide Innovation Concept Notes outlining priority challenges within the financial sector. These will be assigned to UDSM researchers and student teams for analysis, with outcomes jointly reviewed by academic and BoT experts.
The collaboration includes access to anonymized or synthetic datasets under strict data-sharing protocols, as well as joint workshops, hackathons, AI bootcamps, symposia, and co-authored publications. A Joint Technical Committee and Monitoring and Evaluation framework will oversee implementation and ensure measurable outputs, including policy briefs, research publications, and deployable analytical tools.
The partnership signals a shared vision between BoT and universities: building indigenous expertise, strengthening institutional capacity, and positioning Tanzania as a regional leader in AI-enabled financial innovation. As the MoU moves into full implementation, it underscores UDSM’s growing role in translating research excellence into tangible national impact through strong academia–industry linkages.